MacDailyNews Take: We’re liking this one already.
Altucher continues, “The messiah of companies that we never thought would come to Earth in our lifetimes.”
MacDailyNews Take: Oh, yeah…
Altucher continues, “One can go on and on with the metrics of how Apple blows [away estimates] but lets just say that in 2013, iPad and app sales represent about 40 percent of Apple’s gross profits. Total gross profits could be about $80 billion (today is $25 billion). Cash flow could be about 75 percent of that (like it is today), or about $60 billion. Slap a 20 times multiple on that and you have a market cap of $1.2 trillion. That’s a shareprice of about $1,200 by 2013.”
“We can try and model everything: Mac sales, iPod touch sales, song sales, margins, etc. But even back of the envelope using current growth of the iPad and the app store, we can easily make a rationale for a trillion dollar market cap,” Altucher writes. “The fact that iPad sales, rather than cannibalizing the Mac, has actually increased Mac sales further increases the argument. The day my dad had to take away my Apple II+, I cried. I have a 30 year relationship with Apple. I love it. I don’t think I have a real relationship with any other company on the planet. That’s why its going to be a trillion dollar market cap.”
Read more in the full article which includes Altucher’s description of meeting a young Steve Jobs (“so much charisma you couldn’t even see past the light that shined out of him”) – highly recommended – here.
MacDailyNews Take: Jim, you had us at “dream company.”
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